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Collection Agency Merchant Account
A collection agency merchant account is essential to process payments in this unique industry. The debt collection agency industry is one that grossed over $10.4 billion in 2013, domestically, collecting $55.2 billion in acquired debt, and these numbers just continue to grow with every passing year (approximately 15% each year since). And with the average American household having reportedly $130,000 in debt, it’s clear why the debt collection business is such a profitable one.If you’re thinking about capitalizing on this industry, you need to seek merchant account services for collection agencies before launching your business. The collection agency industry is considered high risk, and if you need collection agency credit card processing solutions, you need to know how to secure a high risk collection agency merchant account.
PayKings pride themselves on being the go-to processing company for debt collection agency merchant accounts and merchant account services for collection agencies within this industry, including:
- Debt collection agencies
- Debt buyers
- Debt purchasers in the healthcare, commercial, and attorney spectrum
- Corporate collection and retail departments
While this industry is one that shows its worth in the numbers, collection agency credit card processing is considered high risk due to a few particulars in the industry. A business is considered high risk for a variety of reasons, but the biggest drawbacks for these merchants is in having a difficult time finding a reliable processing partner.
Luckily, PayKings specialize in working with high risk merchants and we have multiple acquiring banking partners that offer debt collection merchant accounts.
Debt Collection Merchant AccountOpening a debt collection merchant account doesn’t have to be an impossible task. The likelihood of obtaining payment processing for collection agency businesses increases substantially if you seek out collection agency merchant services with a company who specializes in providing high risk merchant accounts.
If you’ve applied for collection agency credit card processing to get a collection agency merchant account before, you have likely been told that the person responsible for whether or not you get approved, and with what conditions (e.g. rolling reserve, financing delay, transaction caps, monthly caps, etc.) will be based on the individual underwriter assessing your account. And that is generally true, therefore it is important to understand exactly what this decision maker is searching for.
Debt collection merchant services come in many forms, but unless you go with the experts, like those at PayKings, you’re subject to higher fees and possibly even an outright declined application.
When underwriters are considering your business, they’re trying to ascertain how serious the risk of loss is by allowing your collection agency merchant account to process through them.
Obviously, a high risk payment processor that takes on collection agency merchant accounts is well aware that few businesses have everything figured out perfectly, but the greater case you can present that your company is well-capitalized, has a good business model and is currently working legally and sensibly, the more probable your debt collection merchant account application is going to be approved.
Merchant Services for Debt Collection
Your company’s chargeback ratio is the total count of chargebacks in a month divided by the total amount of sales transactions in the month.
Be aware the number is not calculated by the number of chargebacks you might have lost, won, fought or didn’t fight. The relevant number is in exactly how many of your customers called their issuing bank and initiated a chargeback. That’s it. You can’t “win” enough chargebacks to decrease the ratio, because the number of wins doesn’t go into the calculation.Therefore, if your debt collections merchant account has 100 sales transactions in a month and four customers in that exact same month call their issuing bank to initiate a chargeback, you’ve got a 4% chargeback ratio for that month – regardless of whether those clients were right, wrong, or otherwise.
Collections Credit Card ProcessingCollection agency merchant accounts are considered high risk due to the following reasons:
- Reputational risk
- Dissatisfaction with services delivered
- Recurring or continuity billing model
Get Merchant Account Solutions for Collection AgenciesAt PayKings, we provide comprehensive high risk collection agency credit card processing solutions ranging from startups to businesses that process tens of millions of dollars a month, and those that range from debt buyers buying charged-off debt to agencies collecting on behalf of the card brands and Fortune 500 companies.
PayKings understands the unique needs of different debt collection related businesses and has established 24+ acquiring banking relationships to become experts in getting debt collection companies accepting online payments.
Debt Collection Merchant Account Experts
- 20+ Proven Bank Relationships
- Medium/High Risk Accounts
- Fast Debt Collection Account Approval
- Large Merchant Case Studies
- E-Commerce and Retail Debt Collection
- B2B Debt Collection Vendors Supported
Multiple Payment Solutions
- Multiple E-Commerce Gateway
- Chargeback Prevention
- Credit Cards
- B2B-Level II/III Data Discounts
- 3D Secure Frictionless Checkout
- Mobile Payment
- EMV Readers
Compatibility & Support
- Gateway Recurring Billing
- E-Commerce Cart Plugins
- Developer API / Docs
- International Merchant Accounts
- Dedicated Account Managers
- Interactive Voice Response (IVR)